Calling all agents

[Wannaberich]

How are you finding the property market at the moment?Have things slowed down?are prices dropping?how do you see the next 6 months?

 

[JOHNNY-D]

I think the marekt is kind of STABLE these days, the prices are NOT dropping at all. BUT, i think there is HUGE supply facing the few demands. that's what i think, and i think everybody agrees on that!
but..... i think the next 6 months will be having some more escalation in Demand opposite to Supply. HOPEFULLY!

 

[Andy R]

my wife works for Cluttons and she's says most of the girls can't find enough properties to rent at the moment, but people are putting more properties on the market to sell.
these are mainly people who don't think they can meet thier repayments or don't want to play the long game.

rental prices are still going up and people are taking what they can find and not always what they want.
it could change in 6 months, but as everyone know delays are a fact of life.

 

[cheemz]

rental prices are indeed shooting up...
the two bedroom apartment i rented in JLT in June costed 145,000 per annum... Now same unit being sold for 175,000...!!
In terms of the sales market... well, i'd have to disagree with whoever says things are normal right now... ratio of sellers to buyers is easily 1000000000:1
I see further bad times ahead... how many launches will this market see before bad debts surface and tumble the market into a worse position... Think about it, developers have taken loans from banks and have land payments to make... primary sales are barely even moving right now, so the developers are going to go bust with no funds to make payments...
I hope im wrong..

 

[Investoman_uae]

I dont like how everyone is being negative just because people surrounding them are also negative.

This is Dubai, I believe people will continue to dream of living/working here... also the lift style is above average compared to the rest of the countries. Western people are coming here also because they cant find jobs back home or the taxes are goin crazy or they just find better opportunities here.

I agree its worryin to see developers launch too many units in a very short period of time. Demand is still there but the market is bein fed more than it can chew.

So this is why we call it a correction.

I believe the government must slow down developers because they are suffocating the market, using regulations or other means...

Lets sit back and relax for abit... wait till this cloud of the credit crunch moves away and investor confidence rises again.

Inv.

 

[Jyan]

is it possible to know when this will end..any time frame..or did we reach the peak?!

 

[cheemz]

I dont like how everyone is being negative just because people surrounding them are also negative.

This is Dubai, I believe people will continue to dream of living/working here... also the lift style is above average compared to the rest of the countries. Western people are coming here also because they cant find jobs back home or the taxes are goin crazy or they just find better opportunities here.

I agree its worryin to see developers launch too many units in a very short period of time. Demand is still there but the market is bein fed more than it can chew.

So this is why we call it a correction.

I believe the government must slow down developers because they are suffocating the market, using regulations or other means...

Lets sit back and relax for abit... wait till this cloud of the credit crunch moves away and investor confidence rises again.

Inv.

Agreed- This is Dubai and it is in a class of its own with numerous attractive features for newcomers.... In fact ANYONE i speak to from abroad mentions they are very eager to get here.. in NY last month, when i said to people I've been in Dubai for the last year, people's eyes popped out as if i were from Mars...
BUT are these prices justified... far from it, in my opinion... Who will really live in a one bedroom in the dowtown burj dubai region by Emaar with an ORIGINAL PRICE of 5 million? Thats $1.37 million USD... my mind will never comprehend such price exploitation...
If i can site one example:
ANYTHING from Emaar....
payment plan is 5% down and 15% in 3 months...
the speculators of 3 months ago were absolutley fine with the 5% down... now i have MANY coming to me saying i cant do the second 15%... please sell it at 0% premium... the bank isnt giving him finance... did i forget to mention he is the VP of HR for the bank?? yea kinda horrific...
if all the speculators who have been losing all kinds of cash in global financial markets cant come up with second and third payments, what does the devloper do? Fine in this case its Emaar... where infinite cash is available...
but what about the smaller guys... they have to forfeit peoples apartments and sell them back on the market with big downpayments but at MUCh MUCH cheaper prices... and hence the domino effect will start of negative premiums into the 20%-30% mark...
I'm not being negative.. im being realistic... THIS will happen..
I was once in the boat of people who thought "Dubai is insulated from the global recession for this reason and that reason...." but now ive understood, YOU must heavily consider the worst case scenerio's...
and as you dislike the people who are being negative... I fear for those who are taking it too lightly...

 

[Roshan]

Agreed- This is Dubai and it is in a class of its own with numerous attractive features for newcomers.... In fact ANYONE i speak to from abroad mentions they are very eager to get here.. in NY last month, when i said to people I've been in Dubai for the last year, people's eyes popped out as if i were from Mars...
BUT are these prices justified... far from it, in my opinion... Who will really live in a one bedroom in the dowtown burj dubai region by Emaar with an ORIGINAL PRICE of 5 million? Thats $1.37 million USD... my mind will never comprehend such price exploitation...
If i can site one example:
ANYTHING from Emaar....
payment plan is 5% down and 15% in 3 months...
the speculators of 3 months ago were absolutley fine with the 5% down... now i have MANY coming to me saying i cant do the second 15%... please sell it at 0% premium... the bank isnt giving him finance... did i forget to mention he is the VP of HR for the bank?? yea kinda horrific...
if all the speculators who have been losing all kinds of cash in global financial markets cant come up with second and third payments, what does the devloper do? Fine in this case its Emaar... where infinite cash is available...
but what about the smaller guys... they have to forfeit peoples apartments and sell them back on the market with big downpayments but at MUCh MUCH cheaper prices... and hence the domino effect will start of negative premiums into the 20%-30% mark...
I'm not being negative.. im being realistic... THIS will happen..
I was once in the boat of people who thought "Dubai is insulated from the global recession for this reason and that reason...." but now ive understood, YOU must heavily consider the worst case scenerio's...
and as you dislike the people who are being negative... I fear for those who are taking it too lightly...

Nobody wants to be negative as you said, but facts are facts. This was bound to happen. Sadly the global crisis started it and now with no liquidity in the market and investors angling for bank finance, there will be some serious implications.

How can Dubai be insulated when all others are suffering. Let's accept the fact that Dubai is building too much. Developers getting greedy and launching projects with nonsensical price. All this is bound to end.

With no liquidity in the market and banks being picky, we will not have units coming into the market as they should be. Supply will never meet demand and the rents could go up.

We will see a new Dubai in time to come.

Regards

Roshan